The government has announced that with effect from 6 April 2016 , there will be no charge to tax and NIC on “trivial” benefits provided to an employee. There would be no requirement to show such benefits on a form P11D.
Draft legislation included in the Finance Bill 2015, but not enacted, provided that the exemption would apply if:
- the cost did not exceed £50 (or £50 per person in the case of a benefit provided to several employees at once);
- the benefit did not consist of cash or a credit token (including the use of a credit card);
- no salary sacrifice was involved; and
- provision of the benefit was not linked to any particular services provided by the employee.
The proposal was subject to an annual cap of £300 in the case of office holders of close companies, and of their family members. Such an individual will be able to receive a maximum of £300 worth of tax- and NIC-free trivial benefits in one tax year.
General area |
Specific benefit |
Basic conditions |
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| Subsistence | Meals and drinks | Provided to all employees on similar terms Meals made available by an employer, who is not the employee’s own employer, are also exempt |
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| Small and seasonal gifts | Being made generally available to all employees on similar terms such as a Christmas bottle of wine, flowers on birthdays, and so on | ||
| Homeworking allowance | Up to £208 p.a. automatically exempt | ||
| Further amounts possible | |||
| Overseas | Board and lodging outside the UK may be exempt up to certain limits | ||
| Live-in carers | Exempt on reasonable amounts of board and lodging 1 | ||
| Travel | Workplace parking space | For cars, vans, motorbikes and bicycles | |
| Mileage allowances | If within certain limits, which depend on mileage | ||
| Free transport | Travel, accommodation and subsistence provided during a public transport strike | ||
| Employer-subsidised public bus services | |||
| Work bus provided for journey between home and workplace, including minibuses with at least nine seats | |||
| Travel by taxi between workplace and home for occasional late night working (9pm or later, when no public transport available) if total number of late nights is less than 60 in a tax year Appropriate records must be kept |
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| Provision of alternative transport when expected car sharing arrangements are not available | |||
| Travel from home to workplace for disabled employees | |||
| Private use of emergency vehicle | Provided only used for travel to and from home | ||
| Cycling | Cycles 2 and related safety equipment made available to all employees, and used mainly for commuting and/or certain short journeys between work and local amenities. Private or family use does not disqualify the bicycle provided it is incidental to the main purpose | ||
| Use of a heavy goods vehicle | Exceeding 3,500 kg fully laden and mainly used for business purposes | ||
| Training and counselling | Work-related training | Includes retraining programmes on redundancy | |
| Scholarships | Not received by reason of employment | ||
| Welfare counselling | Made available to all employees on similar terms | ||
| Not relating to finance (other than debt), tax, legal issues, or leisure | |||
| Pensions advice | External advice paid for by the employer up to £150 p.a. | ||
| Provision of equipment | Any work equipment and services | Where private use is not significant | |
| Provision of single mobile phone (including a car phone) | All private use exempt unless employer pays bill in employee’s name | ||
| Medical costs | Medical checks | Health screenings and medical check-ups | |
| Overseas medical costs | Medical insurance and treatment during foreign visits where performing employment duties | ||
| Eye tests and corrective glasses | Where employee uses VDU, and provision of test and glasses is required by Health and Safety regulations | ||
| Miscellaneous | Childcare | Workplace facilities exempt | |
| Weekly allowance per employee per week of direct nursery payment/voucher exempt | |||
| Parties and functions | Cost up to £150 per head exempt | ||
| Event must be available to employees generally | |||
| Removal expenses | Up to £8,000 exempt | ||
| Job-related accommodation | Where necessary, or for better performance of duties, or for security reasons | ||
| Personal equipment for disabled individuals | Provision of equipment and services to enable duties of employment to be performed | ||
| Long-service awards | For at least 20 years of service and not cash | ||
| Sports facilities | Available to all employees but not to general public Facilities also made available by an employer, who is not the employee’s own employer, are also exempt |
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| Staff suggestion schemes | Open to all employees on equal terms | ||
| Entertaining and gifts from third parties | Cost of gift to donor is £250 or less | ||
| Goods provided at a discount | Provided amount paid by employee is more than the cost of the goods incurred by the employer | ||
| Fees relating to monitoring schemes | Reimbursement by the employer of registration fees for the Protection of Vulnerable Groups Scheme (PVGS) in Scotland |